Golden Nugget Announces Discontinuation of Online Sportsbook in Michigan

Golden Nugget has now joined FOX Bet as the latest online sportsbook to exit the state of Michigan. Back in July 2023, Flutter announced that it was shutting down FOX Bet after months of continued major financial losses. About six months later, Golden Nugget Sportsbook Michigan has also now officially announced its exit from the state, effectively causing the number of operators to drop to 13.

When FOX Bet left the state, it did so without finding an immediate replacement. However, for Golden Nugget, the sportsbook is set to collapse its operations into DraftKings Sportsbook Michigan. Before its closure, Golden Nugget Sportsbook had been a poorly performing operator from a revenue perspective.

Golden Nugget made the announcement of its sportsbook closure via an update to its online casino app. Before now, the operator had offered its online casino and sportsbook services under the same app. But this time, the updated app didn’t come with a sportsbook segment as usual. Instead, the following release was made available to users:

“Golden Nugget Online Sportsbook in West Virginia and Michigan will no longer be available post-update to the new Golden Nugget Online Gaming experience. However, players can enjoy the Sportsbook experience in the states of West Virginia and Michigan with our partner, DraftKings Sportsbook.”

“Players can download the DraftKings Sportsbook app or go to the DraftKings Sportsbook website. You will need to create a DraftKings Sportsbook account to wager on the DraftKings Sportsbook in the states of West Virginia and Michigan.”

Golden Nugget’s advice to its customers to refer to DraftKings Sportsbook for their betting needs is not without context. DraftKings had acquired Golden Nugget Online as far back as May 2022 in a deal worth about $1.56 billion. Since then, both companies had partnered with a view to leveraging synergies and combining company revenues. There had also been special joint promotions exclusively available to customers of both platforms in times past.

As it stands now, Golden Nugget will be handing over all of its sportsbook operational facilities to DraftKings. It would appear that the updated online casino app is also gradually highlighting the alliance between both companies. The interface and promotion of the Golden Nugget app is now strikingly similar to that of DraftKings Casino Michigan.

In fact, gaming titles that were exclusive to DraftKings now have a replica on the Golden Nugget platform. For instance, DraftKings Rocket is available as Golden Nugget Rocket. Other options are simply carried over from DraftKings to Golden Nugget without care for the brand labels. So, players can expect to see “DraftKings Basketball Roulette” and “DraftKings Football Blackjack” on Golden Nugget Online Casino Michigan.

However, customers should not expect that their data will be automatically transferred to DraftKings. Golden Nugget made this known after the casino update.

Customers who had an account with the now defunct Golden Nugget Sportsbook will have their information and funds on the newly updated Golden Nugget Casino app. If you belong in this category, simply download the new update, log in with your information and access your account.

For customers who wish to continue sports betting, Golden Nugget recommends withdrawing your funds from the updated casino app and depositing it to the DraftKings sportsbook app.

Last November, CNBC reported that DraftKings surpassed its closest rival FanDuel in the third quarter of 2023, accounting for 31% of the total online gambling market share in the US. This development can be traced to the operator’s strings of partnerships and acquisitions. Most recently, DraftKings is eyeing a partnership with Barstool. In August 2023, PENN Entertainment severed business relations with Barstool and pitched its tent with ESPN.

Despite the rumors of the partnership between Barstool and DraftKings, it is worth noting that the alliance is strictly marketing-based. According to the proposed deal, Barstool is expected to promote odds and promotions of DraftKings on their digital and social media outlets.

However, no deal can be finalized before the Super Bowl due to the buy-out clause in the Barstool-PENN Entertainment deal. If the rumored partnership with DraftKings works out, both companies will be able to leverage each other’s synergies and significantly improve profit.